Cork Protocol, a decentralized finance (DeFi) platform, has recently experienced a serious security breach. On Wednesday, the team announced that an attacker stole about $12 million of wrapped staked Ethereum (wstETH). The attacker took advantage of a weakness in the platform’s system to carry out the theft. The incident is under investigation, and the Cork Protocol team has paused all contracts to stop any further damage. Industry Expert Revealed Details of the Hack In a recent post on X, security experts at Cyvers announced the major hack. It was revealed that the attacker used a harmful smart contract to withdraw approximately 3,761.87 wstETH, worth about $12 million. Unlike many recent hacks, the stolen funds have only been converted to Ethereum (ETH) so far. The attacker has not moved the funds across multiple wallets. Cyvers said this case is unusual because hackers usually move stolen assets quickly to avoid being tracked. This was the case with Cetus Protocol, a decentralized exchange on the Sui blockchain. The platform lost over $223 million in a major security breach. Soon after the attack, the hacker changed the stolen funds into USDC. The funds were then sent to the Ethereum network, which made it harder to get them back. Cetus Protocol is now working with security experts and the Sui blockchain to recover the stolen assets. It is also waiting to see if the attacker will accept the $6 million bounty the platform offered. Phil Fogel, the founder of Cork Protocol, also confirmed the hack on social media. He said the team paused all smart contracts to prevent more damage. Fogel also said the investigation is ongoing and promised to share updates as soon as new information becomes available. Cork Protocol Takes New Approach To DeFi Launched in March 2024, Cork Protocol introduced a unique way to trade risks related to depeg events. This means users can bet on the difference between an asset’s expected value and its current market price in real time. This idea caught the crypto community’s attention because it focused on a new kind of financial risk. It also gave people more ways to use decentralized finance. Cork Protocol is also backed by big players in the crypto industry. In September 2024, Cork Protocol received funding from a16z Crypto, OrangeDAO, and Steakhouse Financial. The project also joined the a16z Crypto CSX Fall 2024 cohort, a program that supports promising crypto startups . These partnerships showed the platform’s potential and the trust it had built before the incident. The post Cork Protocol Suffers $12M Loss in Latest Security Breach appeared first on TheCoinrise.com .
